By September 18, 2017 Read More →

Nexen and partners pull feasibility study on B.C. LNG project


LNG market Petronas photo. Nexen

Economic environment does not support partners’ vision of developing a large LNG business

Aurora LNG and its partners, Nexen Energy and INPEX Gas British Columbia (IGBC), made a strategic decision to end the Aurora LNG feasibility study and will cease all investigation activity, effective immediately, according to a press release.

Over the past four years, Aurora LNG has been conducting a thorough feasibility study on liquefying and shipping LNG from the northwest coast of British Columbia to Asian markets.

Through this feasibility study, Aurora LNG determined the macro-economic environment does not currently support the vision of developing a large LNG business at the proposed Digby Island site.


While disappointed in this outcome, Aurora LNG says it’s proud of work in northwest British Columbia over the past three years and relationships it built with local community members, Indigenous groups, stakeholders and government.

Recently, Petronas and its partners decided not to proceed with the $27 billion Pacific NorthWest LNG project at Port Edward in British Columbia, Canada. Petronas decision was made after a careful and total review of the project amid changes in market conditions.

“We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision,” said Anuar Taib, executive VP upstream.

Upstream operations from the Nexen and partners’ Horn River natural gas assets in northeast British Columbia will continue, and the partners will also monitor the North American gas market to evaluate future upstream and downstream investments according to market conditions.

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